On the balance of probabilities where you own a flat in Seven Kings you actually own a long leasehold interest over your property
Leasehold residencies in Seven Kings with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
Lender | Requirement |
---|---|
Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
Halifax | Minimum 70 years from the date of the mortgage. |
Leeds Building Society | 85 years remaining from the start of the mortgage. |
Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service gives you enhanced control over the value of your Seven Kings leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leon owned a high value apartment in Seven Kings on the market with a lease of a few days over 72 years unexpired. Leon informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were contacted by Dr T Johnson , who moved into a one bedroom apartment in Seven Kings in May 2012. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Seven Kings with a long lease were worth £270,000. The mid-range ground rent payable was £55 invoiced per annum. The lease ran out in 2100. Having 75 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
An example of a Lease Extension decision for a Seven Kings residence is 49 Aldborough Road South in July 2012. The Tribunal decided that the premium payable for the grant of the new lease was £13,925 This case affected 1 flat. The unexpired term as at the valuation date was 61.36 years.